"It depends on the government's future plans. In my view, IKN will not become a ghost city. If Indonesia's economy performs well, government funds will be sufficient. So, there is no need to worry or heed predictions from foreign media," Purbaya said on Monday.
He added that the government has approved private companies to build housing in IKN and that construction is already underway.
"What is clear is that we have approved private companies to build houses there. Construction should have already started. Later, if needed, we will allocate more government funds," he said.
Purbaya emphasized that Nusantara’s development is continuing without interruption.
Head of the Nusantara Capital Authority (OIKN) Basuki Hadimuljono projected that up to 20,000 workers will be employed to accelerate the city's development.
Following Presidential Regulation (Perpres) No. 79 of 2025, which designates Nusantara as Indonesia's new government center, both physical and non-physical development in the capital is expected to intensify. Currently, around 7,000 construction workers reside in worker barracks (HPK).
With Perpres 79/2025, the OIKN has started preparing the legislative and judicial zones, a key step in completing the trias politica for the second phase of development, which includes physical construction, regulatory preparation, and human resource capacity building.
The second phase focuses on constructing the legislative and judicial complexes, with contract signing scheduled between late October and November 2025.
The legislative complex will cover 42 hectares with a budget of Rp8.5 trillion (around US$510 million) for 2025–2027. It will include the Plenary Session Hall, Democracy Plaza, Musyawarah Terrace, museum, and other office buildings.
The judicial complex, covering 15 hectares with a budget of Rp3.1 trillion, will host the Constitutional Court, Judicial Commission, and Supreme Court buildings. Construction of both complexes is expected to take 25 months starting this November.
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Translator: Aji, Kenzu
Editor: Anton Santoso
Copyright © ANTARA 2025
